Bear Put Spread
Outlook: Bearish
Vertical spreads
Long higher-strike put, short lower-strike put. Bearish, defined risk, debit.
Max profit
(Strike width) - debit paid.
Max loss
Debit paid.
Breakeven
Long strike - debit.
Legs
Long
1×
put
ATM
Short
1×
put
ATM −10
Structure
Long 1 put at higher strike + short 1 put at lower strike, same expiration.
When to use
Bearish view with a defined target. Skew makes equity put spreads slightly more expensive than mirror call spreads.
Example
SPY at $450. Long 450 put $6, short 440 put $2. Debit $4. Max profit $6, max loss $4, breakeven $446.
Notes
- For deeper crashes, a naked long put captures more upside than a spread.
Build it in the simulator
Open this structure in the app, adjust spot, IV, and DTE, and watch the payoff and Greeks move.
Get the appRelated strategies
Bull Call Spread
Long lower-strike call, short higher-strike call. Bullish, defined risk, defined reward, debit.
Bull Put Spread
Short higher-strike put, long lower-strike put. Neutral-to-bullish, credit, theta-positive.
Bear Call Spread
Short lower-strike call, long higher-strike call. Neutral-to-bearish, credit, theta-positive.